Manulife’s US business, which operates as John Hancock, swung to a third-quarter profit as the insurer’s AI underwriting tool took on more of the workload. However, a shift in product mix cut new business value.
US core earnings rose 5% to US$254 million, helped by favourable life insurance claims experience, business growth and tax items. That was partly offset by higher expected credit loss provisions and unfavourable lapse experience. Net income attributed to shareholders was US$137 million, compared with a US$54 million loss a year earlier.
Group-wide, Manulife reported record core earnings of C$2.1 billion, up 4% on a constant currency basis, with core earnings per share up 6% to a record C$1.24.
“We delivered strong third quarter results, achieving record core EPS and 17.8% core ROE, driven by double-digit core earnings growth in Asia and meaningful contributions from our North American insurance businesses,” said Phil Witherington, president and CEO.
US APE sales were flat at US$147 million. Changes in product mix cut new business CSM by 20% and new business value by 13%. During the quarter, Manulife enhanced its indexed universal life and survivorship IUL products and introduced three new term life solutions.
Manulife said its Quick Quote underwriting support tool now automates more than 70% of preliminary assessments in the US, up from nearly 50% in the first quarter. The company said that is reducing turnaround times and making better use of its underwriters.
John Hancock Vitality also added Prenuvo’s heart health scan and ŌURA’s latest smart ring to its wellness offering.
In Global Wealth and Asset Management, Manulife | Comvest closed Comvest Credit Partners VII at US$5.4 billion, the largest fundraise in the history of Comvest’s private credit platform. Retirement outflows rose, partly because of higher retirement plan redemptions in the US, while retail flows through US third-party intermediaries weakened.
For life insurance advisors, the jump in Quick Quote automation means faster preliminary underwriting decisions on John Hancock cases. The new term products and IUL enhancements widen the range of options, but the fall in new business margins suggests the mix is shifting toward lower-margin products. Advisors may see more competitive pricing as a result.
